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The Consumer Discretionary sector includes goods and services that are non-essential to consumers. These goods and services include luxury items, apparel, entertainment, leisure activities and automobiles. This category of goods and services is preferred by customers with adequate income to fulfil their desire to possess these items and avail these services.
Consumers tend to purchase these goods in an economic growth phase and are characterised by higher disposable income.
The purchase of consumer discretionary products is often discussed in comparison with consumer staples. Products from both these sectors are influenced by economic cycles. When the economy is strong, consumers spend more on consumer discretionary products.
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